Aerkomm Inc. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the nine months amounting to $149,563, a sharp decrease from $507,949 in the same period of 2023. This decline was attributed to a lack of sustainable recurring revenue from product sales, as the company remains in the development stage of its satellite communication technology.

For the three-month period ending September 30, 2024, Aerkomm's total revenue was $96,308, reflecting a 56.4% increase from $61,582 in the prior year. However, net sales for the nine-month period were only $48,843, down 85.2% from $446,367 in 2023. The gross profit for the three-month period increased significantly to $96,023 from $34,916 in 2023, indicating improved efficiency in operations despite the overall revenue drop.

The company reported a net loss of $16,686,644 for the nine months ended September 30, 2024, compared to a net loss of $13,422,441 for the same period in 2023, marking a 24.3% increase in losses. The loss from operations for the three-month period was $(3,590,815), a decrease from $(4,268,929) in 2023, suggesting some operational improvements.

Aerkomm's total assets decreased to $80,875,907 as of September 30, 2024, down from $87,851,622 at the end of 2023. Total stockholders' equity also fell to $18,955,532 from $24,189,882, reflecting the ongoing financial challenges. The company’s cash position deteriorated significantly, with cash and cash equivalents dropping to $56,952 from $4,202,797 at the end of 2023.

Strategically, Aerkomm is pursuing a merger with IX Acquisition Corp., which is expected to close before October 12, 2025. The company is also seeking to raise additional capital through equity financing, with a targeted capital raise of $100 million linked to the merger. Additionally, Aerkomm has entered into a distribution partnership agreement with Network Access Associates Ltd. for satellite communications products and services in Japan and Taiwan, aiming to enhance its market presence.

The company has faced challenges, including a working capital deficit of approximately $56 million and significant accrued expenses, which totaled $7,956,269 as of September 30, 2024. Aerkomm's operational focus remains on research and development in the aerospace communication sector, with expectations to begin generating recurring revenue in 2025.